Question
Cancico Communications has supplied the following data for use in its ABC system: Overhead Costs Wages and salaries Other overhead costs Total overhead costs.
Cancico Communications has supplied the following data for use in its ABC system: Overhead Costs Wages and salaries Other overhead costs Total overhead costs. $285,000 159,000 $444,000 Activity Cost Pool Direct labour support Order processing Customer support Other Activity Measure Number of direct labour-hours Number of orders Total Activity 8,985 DLHS 450 orders Number of customers These costs are not allocated to products or customers. 120 customers NA Wages and salaries Other overhead costs. Distribution of Resource Consumption across Activity Cost Pools Direct Labour Order Customer Support 20% 15% Processing Support Other Total 35% 30% 15% 100% 25% 25% 35% 100% During the year, Cancico Communications completed an order for special telephone equipment for a new customer, HurnTel. This customer did not order any other products during the year. Data concerning that order follow. Selling price Units ordered. Direct materials Direct labour-hours Direct labour rate $ 226 per unit 160 units $197 per unit 0.6 DLH per unit $ 31 per DLH Required: 1. Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools. Wages and salaries Other overhead costs Total cost Direct Labour Support Order Processing Customer Support Other Totals $ 0 $ 0 S 0 $ 0 $ 0
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